Nicolson Law Group wins Motion for Summary Judgment in Breach of Contract Case

On June 9, 2016, Nicolson Law Group’s client BOKF won a motion for summary judgment in a breach of contract case in the Los Angeles Superior Court. Plaintiff broker-dealer Wunderlich Loan Capital Corporation alleged that BOKF owned and managed a portfolio of residential mortgage loans valued in excess of $54 million. Plaintiff claimed that it entered into an agreement with BOKF whereby Plaintiff would receive a fee equal to one-half of the value of any of the loans sold from the portfolio to a buyer introduced by Plaintiff. Plaintiff asserted that it introduced a buyer who offered to purchase the entire loan portfolio but BOKF refused to sell any of the loans to the buyer. Plaintiff contended that because BOKF refused to proceed with the transaction, BOKF owed double the amount Plaintiff would have earned if the sale had been completed. Plaintiff sued BOKF and sought more than $1 million in damages plus interest and attorneys’ fees.

The Court granted BOKF’s motion for summary judgment. The Court agreed with BOKF that the evidence showed there was no offer from the purported buyer of the mortgage loan portfolio. Instead, there was only a letter of intent containing unspecified, unilateral conditions imposed by the prospective buyer. This letter of intent was at most an “agreement to agree” and not a binding offer. The Court also ruled that Plaintiff’s alleged damages constituted an unlawful penalty. Plaintiff’s claimed fees were twice the amount BOKF would have owed if it failed to proceed with a sale of the loan portfolio. As a result, the case was dismissed and the parties avoided spending the time and expense of further litigation, trial preparation and trial.

David G. Halm represented BOKF with co-counsel Pro Hac Vice Fred Dorwart and Jared M. Burden of Frederic Dorwart, Lawyers. Mr. Halm leads Nicolson Law Group’s Los Angeles office. Nicolson Law Group is proud to obtain this very positive result as it expands its business litigation practice and high performance litigation services coast to coast.

This announcement and its contents are for informational purposes only. These statements are based on the Court’s rulings which may not apply to every case with similar facts. Nicolson Law Group does not suggest that any of these statements will or must apply to any specific issue or case and is not providing legal advice. For further information, please contact David G. Halm
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